IMCO Recycling's German Subsidiary Signs Long-Term Supply Agreement With DaimlerChrysler AG

IRVING, Texas, Oct. 21, 2004 -- IMCO Recycling Inc. today announced that its German subsidiary, VAW-IMCO Guss und Recycling GmbH, has signed a long-term agreement to supply molten aluminum alloys to DaimlerChrysler AG.

The metal to be supplied under the agreement will serve as a base load for a new recycling facility that the company will build in Deizisau, Germany, near DaimlerChrysler AG's foundry in Stuttgart. The plant is expected to begin operations in early 2006 and will have about 40 employees.

VAW-IMCO currently supplies molten aluminum alloys to this customer from its Toeging plant in Bavaria. The metal is delivered via a heating station installed close to the DaimlerChrysler foundry. The company said it expects the volume of its Toeging facility that is now provided to DaimlerChrysler AG to be replaced by other business.

Richard L. Kerr, president and chief executive officer of IMCO, said the company specializes in the just-in-time delivery of molten metal that will be provided to DaimlerChrysler AG. "This delivery method, in which we use utilize customized trucks and refractory-lined crucibles, lowers customers' energy, labor, maintenance and capital expenses as well as melt loss, thus increasing their productivity.

"We are pleased to reach this agreement because it further broadens our participation in the transportation sector, the largest and fastest-growing aluminum market."

Mr. Kerr said the aluminum content of vehicles manufactured throughout the world "has risen significantly over the past decade. This increase has occurred because the use of aluminum instead of traditional materials lowers fuel consumption and emission, improves vehicle safety and performance, extends service, in part through less corrosion, and provides much higher end-of-life value."

IMCO Recycling also announced that VAW-IMCO will start operations in December at a new facility which will produce magnesium from scrap. About 90 percent of the output of the plant, which is being built next to the Toeging facility, will be provided to the European auto industry.

The magnesium plant will have a rated annual capacity of 15,000 tonnes and is expected to begin operating at a rate of 5,000 tonnes per year in the first quarter of 2005. It will recycle magnesium scrap and produce cast magnesium ingots.

VAW-IMCO is Europe's leading recycler of aluminum casting alloys. Its foundry alloy and aluminum recycling facilities in Grevenbroich and Toeging specialize in the processing of chips, turnings, auto scrap and dross. These plants are a leading supplier of specialty alloys to the European auto industry.

IMCO Recycling Inc. is one of the world's largest recyclers of aluminum and zinc. The company has 21 U.S. production plants and, in addition to VAW-IMCO's two German facilities, has three international plants located in Brazil, Mexico and Wales. IMCO Recycling's headquarters office is in Irving, Texas.

SAFE HARBOR REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, and include statements regarding future operations and completion dates. Investors are cautioned that all forward- looking statements involve risks and uncertainties, and that actual results could differ materially from those described therein. These risks and uncertainties would include, without limitation, the availability at favorable cost of aluminum scrap and other metal supplies that the company processes; the financial condition of its customers; restrictions in place on the company's capital expenditures and future growth imposed by its credit facilities; the ability of the company to enter into effective metals, natural gas and other commodity derivatives; the continuation of, or further declines in, the can recycling rate; future natural gas and other fuel costs of the company; a weakening in industrial demand resulting from a decline in U.S. or world economic conditions caused by terrorist activities or other unanticipated events; future downturns in the automotive markets in the U.S. and Europe; future decreases in recycling outsourcing by primary producers; future levels and timing of capital expenditures; fluctuations in operating margins for the products and services the company provides; the retention of its major customers; the timing and amounts of collections; the future mix of product sales vs. tolling business; currency exchange fluctuations; future writedowns or impairment charges which may be required because of the occurrence of some of the uncertainties listed above; and other risks listed in the company's filings with the Securities and Exchange Commission, including but not limited to the reports on Form 10-K for the fiscal year ended December 31, 2003, and on Form 10-Q for the quarter ended June 30, 2004, as amended, particularly the sections entitled "Cautionary Statements For Purposes of Forward-Looking Statements" contained therein.